Zoom has become ubiquitous in business and personal communication. But just how many people use Zoom on a daily basis? What is driving this incredible growth? And how does Zoom make money from all these users?
As a consultant who advises small business leaders on digital tools, I decided to dig into the numbers to uncover the truly astonishing adoption of Zoom. Keep reading for detailed statistics, analysis of Zoom‘s rise, and tips for avoiding "Zoom fatigue."
Zoom‘s User Base Skyrocketed Almost 3000% During the Pandemic
In December 2019, Zoom reported having just 10 million daily meeting participants on their platform. But by April 2020, that number had exploded to 300 million daily Zoom users – a jaw-dropping increase of 2,900%.
What drove this unprecedented surge? The COVID-19 pandemic necessitated remote work and virtual meetings for safety. Zoom filled that need better than competitors like Skype and Webex. Reliability, ease of use, and versatility made Zoom the video platform of choice.
By 2021, Zoom had 504,900 business clients with over 10 employees. Compare that to only 66,300 in 2019 – over 7x growth in two years.
Zoom‘s user base now includes:
- 300 million daily meeting participants
- Over 500,000 business customers
- 100,000 educational institutions using Zoom
- Millions of individual/family accounts
And "Zoom" has become a household verb – "Let‘s Zoom later!"
Zoom Dominates the Video Conferencing Market
In 2020, Zoom captured a stunning 27% market share of the video conferencing industry. For comparison, its next biggest competitor, Cisco Webex, held just 13.7% market share.
"Zoom became the place to be literally overnight." – Byron Deeter, partner at Bessemer Venture Partners
Zoom‘s meteoric rise to the top has been fueled by its reliability, ease of use, extensive features, and scalability. Businesses small and large depend on Zoom daily.
How Does Zoom Make Money from 300 Million Users?
Like many tech unicorns, Zoom employs a "freemium" model with paid subscriptions unlocking additional features.
- 64% of revenue comes from enterprises (10+ employees)
- 36% comes from individual and small business accounts
In 2021, Zoom generated $4.1 billion in revenue, up 326% from 2020. This was driven by massive remote work and distance learning adoption.
Zoom monetizes users through:
- Subscription plans for meetings, webinars, chat, etc.
- Zoom Phone bringing VOIP and cloud PBX to businesses
- Services like Zoom Rooms for conference rooms
- Partnerships with hardware companies
With over 300 million participants, Zoom has an engaged audience to sell add-on products and services to.
Beware "Zoom Fatigue" When Video Calling
The rise of video calls has also led to a phenomenon dubbed "Zoom fatigue." Virtual interactions can be more tiring than in-person meetings.
Women report 14% more Zoom fatigue than men at 5.5%, likely due to increased demands on work-life balance.
You can avoid Zoom fatigue by:
- Scheduling regular breaks during the day
- Minimizing distracting multitasking
- Adjusting your set up with proper lighting and camera angle
- Dressing casually and turning off self-view
The Takeaway
It‘s astonishing that a company founded in 2011 now has 300 million daily users from virtually zero. COVID-19 propelled Zoom into dominance as video communication became essential overnight.
With remote work and events here to stay, Zoom has secured its foothold as a prime connector for business and personal interactions globally. But beware virtual meeting fatigue!
Ready to give Zoom a try yourself? Sign up here for a free account and join the 300 million others connecting every day.
